Government commits £1bn to Business Bank

Chancellor George Osborne has confirmed £1bn of funding for a new Business Bank aimed at boosting lending to small businesses.

As revealed by the Chancellor and business secretary Vince Cable back in September, the new bank will “transform the way that government delivers support to SMEs” and will “stimulate the provision of long-term capital, including by leveraging in substantial private sector ﬁnance.”

As detailed in the Autumn Statement, the government will co-invest at least £300m over the next two years, alongside private investors, in channels that are expected to help diversify the sources of ﬁnance available to small businesses.